FX.co ★ Philippines Trade Deficit Narrows in December

In December 2025, the Philippines witnessed a reduction in its trade deficit, which decreased to USD 3.52 billion from USD 4.15 billion in the same month of the previous year. This marks the smallest trade deficit since February, driven by a more rapid increase in exports compared to imports. Exports experienced a significant rise of 23.3% year-on-year, reaching USD 6.99 billion, with electronic products leading the charge at 43.6%. Electronic goods continue to be the country's foremost export, comprising 43.6% of total shipments. The United States holds the largest share of exports at 15.7%, despite a 19% tariff implemented in August. Other key export destinations included Hong Kong (15.1%) and Japan (14.0%). On the import side, there was a 7.1% increase, totaling USD 10.52 billion, primarily fueled by greater demand for electronic products (25.8%) and mineral fuels, lubricants, and related materials (6.3%). China maintained its position as the leading source of imports, accounting for 28.4%, followed by South Korea (9.8%), Indonesia (6.8%), and Japan (6.8%). For the entirety of 2025, the Philippines' trade deficit contracted to USD 49.17 billion, down from USD 54.33 billion in 2024.